2008 vcaa question

[Albeno69]

he i finished the exam a while ago but i dont know if i did something wrong, most likely or the answers are wrong.
question 1.2.2 the debit entry for the creditors control account?
i don't get that figure.

[aposta28]

Did u put in the Creditor honda for 4000 and 100 discount?
Maybe thats what you went wrong? other than that..
Maybe wrong journal?

[aposta28]

Because it was 92900 totals to date
and you put in the Creditor Honda 4000 less 100 gst

Therefore it should look something like this

Balance CR 20800
Stock/Control/Gst CLearing 104500
Bank/discount revenue 96900

[Albeno69]

Because it was 92900 totals to date
and you put in the Creditor Honda 4000 less 100 gst

Therefore it should look something like this

Balance CR 20800
Stock/Control/Gst CLearing 104500
Bank/discount revenue 96900

yea i got the total for the creditors to be 96900 but then a discount of 1200, dont you have to take the discount away form the total creditors figure.?

[Albeno69]

so its only with debtors were you - the discount from the creditors column in receipts journal.

[aposta28]

Ok, For ledgers.

To get your bank/discount rev/exp. you record the total in the Debtors column/Creditors. You don't subtract the discount with ledgers.
HOWEVER

When you are doing your CFS, Yes, you do Debtors- Expense/ Creditors- Disc Revenue

Hope that makes sense.

[Albeno69]

Ok, For ledgers.

To get your bank/discount rev/exp. you record the total in the Debtors column/Creditors. You don't subtract the discount with ledgers.
HOWEVER

When you are doing your CFS, Yes, you do Debtors- Expense/ Creditors- Disc Revenue

Hope that makes sense.

yea thanks now i get it stupid mistakes

[kakar0t]

Can someone plz plz explain the wages question on the last page?

[aposta28]

Ok, so payments are made on the 15th of each month.
So for October. its 10000 dollars.
However there are accrued wages at 1stof october of 5000

So i would be:

Bank 10000.
5000 of it is expense
5000 of it as Accrued wages (Sundry Coloumn)

And for Nov and December its simply
10000 dollars, in wages coloumn and thars it


Ok, for 2.6.2

Wages owing is 6000 as of 31st of Dec, So simply..


Wages Expense 6000 DR
Acrrued Wages Exp 6000 CR

The Wages expense account will look

DR Bank of 25,000 as CPJ shows      
  
Accrued wages 6000  
                      
2.6.3
Accrued Wages account
Balance 5000 (October 1st)
wages expense 6000
And you pay off 5000 of it in October.

If you need more explaining feel free to ask

[mmmmm]

Btw,

What are the uses of profit and loss statement?

And what are the uses of cashflow statement?

thnks

[aposta28]

Cash flow uses

To aid decision making about the firms cash activities

To assess whether the business is meeting its cash trarget

Profit nd loss uses:

To asisst the adequacy of the firms mark up (Gross Profit)
To assist the performance of management (Adjusted Gross Profit in relating to stock loss or gains)

[kakar0t]

Ok, so payments are made on the 15th of each month.
So for October. its 10000 dollars.
However there are accrued wages at 1stof october of 5000

So i would be:

Bank 10000.
5000 of it is expense
5000 of it as Accrued wages (Sundry Coloumn)

And for Nov and December its simply
10000 dollars, in wages coloumn and thars it


Ok, for 2.6.2

Wages owing is 6000 as of 31st of Dec, So simply..


Wages Expense 6000 DR
Acrrued Wages Exp 6000 CR

The Wages expense account will look

DR Bank of 25,000 as CPJ shows     
   
Accrued wages 6000   
                     
2.6.3
Accrued Wages account
Balance 5000 (October 1st)
wages expense 6000
And you pay off 5000 of it in October.

If you need more explaining feel free to ask

but because there is 10000 expense every month doesn't that mean that there will be another 5 grand accrued for every month after that?

[aposta28]

There is no information too suggest that, If it said 5000 accrued every month you would put it down
However we cannot assume that thats the case. Therefore it just stays at 5000 for that Month

[kakar0t]

Mad as thanks dude!